{"id":26149,"date":"2024-11-13T07:59:04","date_gmt":"2024-11-13T12:59:04","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=26149"},"modified":"2026-07-09T10:27:31","modified_gmt":"2026-07-09T14:27:31","slug":"what-is-material-requirements-planning","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/what-is-material-requirements-planning\/","title":{"rendered":"What is material requirements planning? (MRP)"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is material requirements planning? (MRP)\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2024-11-13T07:59:04-05:00\">November 13, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is material requirements planning? (MRP)\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-material-requirements-planning\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/michellecornish\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/11\/Michelle-Cornish-350x350.jpg\" class=\"entry-author__image\" alt=\"\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/11\/Michelle-Cornish-350x350.jpg 350w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/11\/Michelle-Cornish.jpg 600w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Michelle Cornish<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Having the right materials available at the right time is crucial for production efficiency. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s where Material Requirements Planning (MRP) comes in. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But what is MRP?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you want to streamline your operations, reduce waste, and improve customer satisfaction, MRP is a powerful solution to have in your toolkit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By implementing MRP, you can ensure you have the necessary materials to meet demand while minimizing inventory costs. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding how MRP works and its impact on your supply chain can significantly enhance your business&#8217;s production and overall success. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let&#8217;s take a closer look at MRP and how it can help your business.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-here-s-what-we-ll-cover\">Here&#8217;s what we&#8217;ll cover<\/h4>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-mrp\" data-level=\"2\">What is MRP?<\/a><\/li><li><a href=\"#h-how-mrp-works\" data-level=\"2\">How MRP works<\/a><\/li><li><a href=\"#h-mrp-inputs\" data-level=\"2\">MRP inputs<\/a><\/li><li><a href=\"#h-mrp-steps-and-processes\" data-level=\"2\">MRP steps and processes<\/a><\/li><li><a href=\"#h-mrp-outputs\" data-level=\"2\">MRP outputs<\/a><\/li><li><a href=\"#h-advantages-of-mrp\" data-level=\"2\">Advantages of MRP<\/a><\/li><li><a href=\"#h-mrp-at-work\" data-level=\"2\">MRP at work<\/a><\/li><li><a href=\"#h-disadvantages-of-mrp\" data-level=\"2\">Disadvantages of MRP<\/a><\/li><li><a href=\"#h-mrp-vs-erp\" data-level=\"2\">MRP vs. ERP<\/a><\/li><li><a href=\"#h-final-thoughts-on-mrp\" data-level=\"2\">Final thoughts on MRP<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-mrp\">What is MRP?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you have a <a href=\"https:\/\/www.sage.com\/en-us\/blog\/a-guide-to-basic-accounting-for-manufacturing-businesses\/\" target=\"_blank\" rel=\"noreferrer noopener\">manufacturing<\/a> business, MRP is essential for managing processes by calculating what materials are needed, when they&#8217;re needed, and in what quantity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Developed in the mid-twentieth century, MRP has evolved into a critical component of modern manufacturing, helping companies streamline inventory and production scheduling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This system works by using data from current inventory levels, the production schedule, and demand forecasts to determine what materials are required for production.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Essentially, MRP helps manufacturers answer three critical questions: what&#8217;s needed? When is it needed? How much is needed?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-mrp-works\">How MRP works<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">At its core, <a href=\"https:\/\/www.sage.com\/en-us\/industry\/manufacturing\/\" target=\"_blank\" rel=\"noreferrer noopener\">MRP<\/a> is designed to balance supply and demand. It does this by taking into account current inventory levels, production schedules, and demand forecasts. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By calculating the materials required for production, MRP helps ensure timely ordering and delivery of components, avoiding shortages or overstock.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To achieve this balance, MRP breaks down production plans into detailed steps. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It starts by assessing the Bill of Materials (BOM)\u2014a comprehensive list of all parts and raw materials required for each product. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then, it compares the BOM with the current inventory status, determining which materials are already on hand and what still needs to be ordered.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next, the Master Production Schedule (MPS) helps MRP align material orders with production timelines, ensuring that components arrive just in time for use. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The system also factors in lead times\u2014the time it takes to procure materials or manufacture sub-assemblies\u2014so that every part arrives when needed, reducing the risk of delays or bottlenecks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These detailed calculations allow businesses to manage resources efficiently while minimizing excess stock or costly interruptions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-mrp-inputs\">MRP inputs<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For MRP to function effectively, it requires several key inputs. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These inputs help the system calculate material requirements and generate accurate production schedules. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key inputs include:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-bill-of-materials-bom\">1. Bill of Materials (BOM)<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This is a comprehensive list of all the materials and components needed to manufacture a product.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-inventory-status\">2. Inventory status<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The MRP system needs to know how much inventory is currently available to avoid over-ordering.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-3-master-production-schedule-mps\">3. Master Production Schedule (MPS)<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The MPS outlines what products need to be produced and when, serving as a guide for material planning.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-4-lead-times\">4. Lead times<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Accurate <a href=\"https:\/\/dclcorp.com\/blog\/inventory\/lead-time\/\" target=\"_blank\" rel=\"noreferrer noopener\">lead times<\/a> ensure that materials are ordered well in advance and are available when needed for production.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Together, these inputs create the foundation for the MRP system to work effectively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-mrp-steps-and-processes\">MRP steps and processes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An MRP system follows a series of steps to ensure efficient material planning. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These steps include:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-netting-of-requirements\">1. Netting of requirements<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This process compares what is needed for production against what&#8217;s already in stock, helping to determine the shortfall.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-lot-sizing-and-ordering\">2. Lot sizing and ordering<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The MRP system calculates the optimal order size to meet demand while minimizing costs.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-3-scheduling\">3. Scheduling<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Time-phased requirements are created based on the production schedule, ensuring materials arrive <a href=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-just-in-time-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">just in time<\/a> for use.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-4-bom-explosion\">4. BOM explosion<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The system breaks down the BOM to identify all sub-assemblies and components required, ensuring every part is accounted for in the production process. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this step the end product is \u201cexploded\u201d into all of its raw materials, parts, and assemblies required for production.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By following these steps\u2014netting of requirements, lot sizing, scheduling, and BOM explosion\u2014MRP systems provide manufacturers with a detailed and precise plan for material acquisition and production. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When executed properly, these processes allow businesses to optimize their manufacturing operations and maintain a steady flow of production, ultimately improving efficiency and cost control.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-mrp-outputs\">MRP outputs<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once the MRP system processes the inputs, it generates a set of outputs that help manufacturers manage production. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These outputs include:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-purchase-orders\">Purchase orders<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Instructions for suppliers on what materials need to be ordered and by when.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-work-orders\">Work orders<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Directives for the production team to begin work on specific products or components.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-rescheduling-notices\">Rescheduling notices<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Notifications to adjust production schedules or order timings due to changes in demand or delays in material supply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These outputs provide a clear roadmap for manufacturing businesses, ensuring production runs smoothly and materials are used efficiently.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-advantages-of-mrp\">Advantages of MRP<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Implementing MRP offers a range of benefits that can transform how businesses manage their production processes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By ensuring that materials are available precisely when needed, MRP helps you avoid costly delays, streamline inventory management, and improve overall efficiency. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether you&#8217;re a small business or a large manufacturer, understanding these advantages can help you decide whether MRP is the right solution for optimizing your operations and meeting customer demands. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some of the key benefits MRP can bring to your business.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-streamlined-inventory-management\"><p dir=\"ltr\"><strong>Streamlined inventory management<\/strong><\/p><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\"><p dir=\"ltr\">By ensuring materials are ordered only when needed, MRP reduces the chances of overstock or<br>understock.<\/p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-reduced-waste\"><p dir=\"ltr\"><strong>Reduced waste<\/strong><\/p><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\"><p dir=\"ltr\"><span style=\"font-size: revert; color: var(--color-body); font-family: var(--primary-font); font-weight: var(--font-weight-normal);\">MRP helps <a href=\"https:\/\/www.sage.com\/en-us\/blog\/manufacturing-to-reduce-waste\/\" target=\"_blank\" rel=\"noreferrer noopener\">minimize excess materials<\/a> and prevents costly production stoppages caused by material shortages.<\/span><\/p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-improved-customer-service\"><p dir=\"ltr\"><strong>Improved customer service<\/strong><\/p><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\"><p dir=\"ltr\">With better planning and scheduling, you can meet customer demand on time, improving overall satisfaction.<\/p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-better-decision-making\"><p dir=\"ltr\"><strong style=\"font-size: revert; color: var(--color-body); font-family: var(--primary-font);\">Better decision-making<\/strong><\/p><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\"><p dir=\"ltr\"><span style=\"font-size: revert; color: var(--color-body); font-family: var(--primary-font); font-weight: var(--font-weight-normal);\"> MRP provides clear data and insights, helping manufacturers make informed decisions about production and purchasing.<\/span><\/p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-mrp-at-work\">MRP at work<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As an example, consider a small furniture manufacturing company that produces custom tables. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before implementing an MRP system, they often struggled with inventory management\u2014either running out of key materials like wood or having excess stock that took up space and tied up cash. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They also faced delays in production because they didn&#8217;t have a clear view of what materials were needed and when.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After adopting a basic MRP system, the company began tracking its inventory levels and production schedules more efficiently. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The system calculated exactly how much wood and hardware they needed for each custom order and alerted the team when it was time to reorder materials. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This resulted in a 15% reduction in material costs and improved customer satisfaction by cutting lead times for deliveries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this small business, MRP was a game-changer, helping them stay competitive in a crowded market while maintaining lean operations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-disadvantages-of-mrp\">Disadvantages of MRP<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite its advantages, MRP systems do come with challenges, including:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-complexity\"><strong>Complexity<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Implementing and maintaining an MRP system can be complex and time-consuming, particularly for small businesses without dedicated IT resources.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-dependence-on-accurate-data\"><strong>Dependence on accurate data<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">MRP is only as effective as the data it receives. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If inputs such as inventory levels or lead times are inaccurate, the entire process can fail.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-resource-intensive\"><strong>Resource-intensive<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">MRP systems require ongoing management and maintenance, which can be costly for small businesses. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They may also require training and dedicated staff to ensure proper operation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While MRP offers significant benefits in terms of efficiency and resource management, it&#8217;s important to consider the potential challenges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The complexity of implementation, reliance on accurate data, and ongoing resource requirements can be barriers, especially for smaller businesses or those without robust IT infrastructure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, with proper planning, training, and a commitment to maintaining accurate inputs, these challenges can be mitigated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, understanding the disadvantages of MRP allows businesses to weigh the costs and complexities against the potential for streamlined operations and improved production outcomes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-mrp-vs-erp\">MRP vs. ERP<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While MRP specifically focuses on manufacturing processes, it is often a subset of a broader <a href=\"https:\/\/www.sage.com\/en-us\/blog\/business-case-new-erp\/\" target=\"_blank\" rel=\"noreferrer noopener\">Enterprise Resource Planning<\/a> (ERP) system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While MRP deals specifically with planning resources needed in the manufacturing process, ERP systems integrate various business functions like finance, sales, and human resources. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Together, these systems provide businesses with a comprehensive view of their operations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, MRP helps manufacturers determine what materials they need to meet production goals, while ERP might provide insights into how the cost of those materials impacts overall profitability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses looking for a more comprehensive system that covers all aspects of their operations may prefer <a href=\"https:\/\/www.sage.com\/en-us\/blog\/erp-implementation-plan-6-key-phases-for-success\/\" target=\"_blank\" rel=\"noreferrer noopener\">ERP<\/a>. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, MRP offers a more focused solution for companies primarily concerned with optimizing their manufacturing processes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts-on-mrp\">Final thoughts on MRP<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An MRP system can be an essential tool to optimize your production processes, reduce costs, and improve customer satisfaction. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By ensuring you have the right materials at the right time, MRP helps eliminate waste, avoids delays, and maintains efficiency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your business relies heavily on manufacturing and material management, consider implementing or upgrading to an MRP system. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It may be the key to driving productivity and gaining a competitive edge in your industry.<\/p>\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/business-strategy\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness strategy\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/inventory-management\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tInventory management\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/manufacturing\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tManufacturing\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/staying-competitive\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tStay competitive\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/supply-chain-management\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tSupply chain management\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-30823 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-intelligence tag-cash-flow tag-small-business tag-starting-a-business tag-staying-competitive business_type-small-business business_type-growing-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-1215x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-24T09:08:55-04:00\">June 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/how-to-track-business-expenses\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tHow to keep track of business expenses\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tIf you&#8217;re responsible for managing business finances, keeping track of expenses affects how clearly you can see your cash flow and make informed decisions. Learn the key steps, best tools, and how to build a process that keeps your finances accurate and error free. \t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-36758 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-distribution tag-supply-chain-management business_type-small-business business_type-growing-business industry-distribution industry-wholesale-distribution\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/reduce-supply-chain-costs\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1349031655-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1349031655-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1349031655-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1349031655-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-24T08:00:00-04:00\">June 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow to reduce supply chain costs: 10 strategies that work\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-30598 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations category-trends-insights tag-boss-your-business tag-business-intelligence tag-business-strategy tag-sage-news tag-security-fraud tag-small-business tag-starting-a-business business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-expense-report-fraud\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/08\/BrandShootLDN_Jul2022_TechSoftware_0620-684x384.jpeg\" class=\"card-post__image\" alt=\"A person giving a presentation to colleagues.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/08\/BrandShootLDN_Jul2022_TechSoftware_0620-684x384.jpeg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/08\/BrandShootLDN_Jul2022_TechSoftware_0620-768x432.jpeg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/08\/BrandShootLDN_Jul2022_TechSoftware_0620-1440x810.jpeg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-24T05:46:09-04:00\">June 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tExpense fraud: How to detect and prevent it in your organization\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-30699 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-automation tag-digital-transformation tag-erp tag-inventory-management tag-supply-chain-management business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-order-management\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-684x384.jpg\" class=\"card-post__image\" alt=\"Lady carrying cartons\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-11T08:52:26-04:00\">June 11, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is order management?\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-29062 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-boss-your-business tag-business-intelligence tag-growing-a-business tag-inventory-management tag-productivity tag-staying-competitive tag-supply-chain-management business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-an-order-management-system-oms\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-10T10:25:03-04:00\">June 10, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">19 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is an order management system?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is MRP? Learn how it works, plus its benefits and drawbacks. A complete guide to understanding Material Requirements Planning for your business needs.<\/p>\n","protected":false},"author":1739,"featured_media":25650,"menu_order":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[44,49],"tags":[170,19,251,155,36],"business_type":[41],"lilypad":[],"context":[],"industry":[53],"persona":[98,97],"imagine_tag":[463,433,504,233,237],"coauthors":[618],"class_list":["post-26149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy-legal-operations","category-trends-insights","tag-business-strategy","tag-inventory-management","tag-manufacturing","tag-staying-competitive","tag-supply-chain-management","business_type-growing-business","industry-manufacturing"],"sage_meta":{"region":"en-us","author_name":"Michelle Cornish","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Discrete-Mfg-Appliances_0515.jpg","imagine_tags":{"463":"ERP","433":"Inventory Management","504":"Manufacturing","233":"Medium Businesses","237":"Supply Chain Management"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/26149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1739"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=26149"}],"version-history":[{"count":1,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/26149\/revisions"}],"predecessor-version":[{"id":37104,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/26149\/revisions\/37104"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/25650"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=26149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=26149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=26149"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=26149"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=26149"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=26149"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=26149"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=26149"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=26149"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=26149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}